The construction of Dispute Resolution for the cross-border e-commerce

1. The construction of Dispute Resolution for the cross-border e-commerce November 2, 2010 ODR Room Network INC. Quoted from a document of Ministry of Economy, Trade and Industry, Japan September 2010

2. Movement of the dispute settlement for Cross-border e-commerce in the world Movement of the international cooperation for ODR • Increasing  the number of internet user in Asian region. • increasing e-commerce. EU ECC-Net OAS-ODR Initiative Asia（ERIA) ICA-Net ODR may encourage legal harmonization upon sharing legal information.

3. In Asia, ASEAN and east asia Idea of ICA-Net：　International Consumers Advisory Network ○　International complaint handling cooperation for consumer’s cross border dispute. The purpose is to accelerate market with safe and secured e-commerce acceleration. ○　2007/11: GBDe（Global Business Dialogue on Electric Commerce）proposed the concept. ○　2008/12-2010/3：　ERIA WG started a ICA-Net pilot project. 2010/3 : ERIA reported its experience including recommendation with Japan, Korea, Malaysia, Philippines, Vietnam, Singapore, and Thailand, observed by US, Taiwan, china) 2008-09ERIA ICA-Net Pilot Project Flow chart of ICA-Net 相談内容を翻訳・伝達 伝達 対応要請 A国 窓口機関 B国 窓口機関 B国 法執行機関 業界団体　等 トラブル 相談 越境Ｅコマース A国・買主 （消費者） B国・売主 （企業） 法執行 対応要請 ADRなど 言語Ａ （例えば中国語） 言語Ｂ （例えば日本語）

4. In Asia, ASEAN and East Asia(ICA-Net) Structure of ICA-Net

5. In Asia, ASEAN and East Asia(ICA-Net) • Terms of Reference of ICA-Net • 1. Objective • To establish a secure and safe e-commerce environment in ASEAN and the EastAsian region through a reliable structure of dispute resolution. • 2. Scope • Every complaint and dispute arising from B2C cross-border e-commerce. • Cases involved in mainly consumers in ASEAN and the East Asian region. • 3. Structure • * Government of each member country assigns CALO • * Each member country provides funding for the operation of its CALO • * CALO enters into a MOU with each country under government support • ４．Requirement for CALO • A CALO should be reliable as an international ADR/ODR institution, which aims at offering redress for consumers. Thus, a CALO must comply with the following standards which are also described in 2.1.: • a. Fairness / Independence / Impartiality d. Affordability / Cost effectiveness • b. Visibility e. Credibility f. Effectiveness • c. Availability for use by consumers g. Finality h. Enforceability i. Transparency

6. In Asia, ASEAN and East Asia(ICA-Net) • 5. Role of CALO • １）The role of a CALO in country A: support to the consumer in country A • Receives inquiries from its domestic consumers, provides advice on legal matters, methods of dispute settlement, systems or agencies available for dispute settlement. • When a consumer files a complaint to the CALO, it translates his/her complaint about the said business into English, reports it to the CALO where the business is located, and gives feedback to the consumer. • For complaints other than transactions, such as those related to lotteries, gambling, spam, or identity theft, as well as cases where the location (country) cannot be identified, the CALO recommends reporting them through the site of econsumer.gov. • ２）The role of a CALO in country B: correspondence to the business in country B • When a complaint is filed with a domestic business through an overseas contact point, the CALO asks an industry group, a self-regulatory scheme (Trustmark, etc.) or the shopping mall to which the said business belong to respond to the complaint, depending on the nature of the problem. Or, the CALO might makedirect contact with the said business. • Cooperation of law enforcement authorities is requested when the contactinformation of the business is unknown, when there is no response from thebusiness, or when there seems to be a violation of a law. • The CALO reports the result to the CALO in the consumer’s country.

7. In Asia, ASEAN and East Asia(ICA-Net) • 6. Information handing and management need to • １）Protect personal information of the parties involved, • On safe and secured Platform, easy to handle • Complaint details are shared only among related CALO • CALO should follow OECD guideline and each country’s regulation to handle privacy information. • Obtain a prior approval from consumer to hand his/her privacy information to the other CALO • ２）Share the maximum amount of information among parties concerned for the sake of dispute resolution and for future harmonization of legal systems in different countries, • ３）Share information to enlighten consumers and businesses • ７．Future • Improves its credibility through building up the successful cases it handles. • To be visible for a customer, cooperation with existing complaint handling systems and information dissemination are necessary to gain international exposure. • To make the accumulated information accessible to customers and businesses willenhance the transparency of ICA-Net. Such information can also be used as reference by policy makers of in other countries in formulating and implementing policies. • ICA-Net should be designed on the premise that a CALO in each country is financially stable, so that ICA-Net becomes an affordable mechanism for handling consumer cases. Furthermore, a sustainable secretariat is required for the efficient and effective operation of ICA-Net.

8. In Asia, ASEAN and East Asia(ICA-Net) • Recommendation on ERIA Report 2009 • To ensure the effective operation of the ICA-Net, the following need to be addressed with government assistance: • To select a reliable CALO in each country • so that countries can effectively communicate with each other • To ensure adequate financing • for complaint handling affordable to consumers • To cooperate with domestic law enforcement entities • To promote the ICA-Net to aggregate complaints cases • To expand the number of participating countries as a CALO and to cooperate with other international fora in the region as well as outside the region. ICA-Net Case Report